This appears as the #1 result in a search engine for the term credit score employers:
One in Six Employers Look at Your Credit Score – The Wallet – WSJ
Mar 11, 2009 … Many employers are checking job candidates’ credit scores, but how big of a factor are credit scores in a company’s eventual decision to …
See the comment on the story’s page asking for a correction.
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To: Kathy Chu, USA TODAY
From: “creditscoring.com” <greg@creditscoring.com>
Subject: credit score, employers
Date: 3/21/09 |
You wrote, “And if scores can drop even if consumers do nothing wrong, they say, it raises the question of whether there’s a flaw in the credit scoring formulas relied upon by the nation’s lenders, insurers, and increasingly employers and landlords.”
Who is your source for the information that, increasingly, employers rely upon credit scoring formulas?
6/18/2009 update:
See “USA Today on employers using credit scores, Part 1 – National newspaper will not identify its source“
In its November 1, 2006 advice column, Experian wrote: “An employer wouldn’t necessarily receive a credit score with the credit report. That would depend on its policies and procedures.”
In 2007, Experian said: “We do not score for employment reports… If you chose to do that, I think you would be breaking the law.”
In 2008, Experian said, “Experian’s business policy prevents the inclusion of credit scores with an employment report, at Experian called Employment Insight.”
See http://www.creditscoring.com/influence/government/employercreditscorebelievers.html.
See http://michiganmessenger.com/14511/switalski-wants-to-stop-use-of-credit-reports-in-hiring-process .
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To: The Honorable Jon Switalski
From: “creditscoring.com” greg@creditscoring.com
Subject: credit score, employer Cc: Michigan House Speaker Andy Dillon; Todd Heywood, The Michigan Messenger Date: March 17, 2009 |
You said, “If employers are allowed to continue using credit scores in hiring decisions, many hard-working people will be unfairly penalized.”
What evidence suggests that employers use credit scores in hiring decisions?
See the previous email to the Federal Reserve.
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To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
From: “creditscoring.com” <greg@creditscoring.com>
Subject: Re: credit score, employers III
Cc: D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta;
Webmaster, Federal Reserve Bank of Atlanta;
Jean Tate, media relations liason, Federal Reserve Bank of Atlanta;
Federal Reserve Consumer Help;
Dennis P. Lockhart, president and chief executive officer, Federal Reserve Bank of Atlanta;
D. Scott Davis, chairman, Federal Reserve Bank of Atlanta (via email address of Debbie Curtis-Magley, UPS;
Patrick K. Barron, first vice president and chief operating officer, Federal Reserve Bank of Atlanta;
Carol B. Tomé, deputy chairman, Federal Reserve Bank of Atlanta;
Date: 2/26/09
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Please reply.
At 12:22 PM 2/17/2009, creditscoring.com wrote:
Please reply.
At 12:34 PM 2/12/2009, creditscoring.com wrote:
You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”
See http://creditscoring.com/influence/government/employercreditscorebelievers.html .
Who is your source regarding credit score use by employers?
What is the name of an employer who uses credit scores?
[Update, 4/18/10: http://creditscoring.com/influence/… atlanta.html]
The FTC spots say, “No hidden fees. Absolutley free.”
The credit score sold at the spoofed Experian website FreeCreditReport.com is the PLUS Score. Experian states:
Your PLUS Score is formulated using the information in your credit file. It is modeled after the hundreds of commercial credit scores that help potential lenders, landlords, and employers quickly gauge your credit history and decide what kind of a risk they might be taking if they approve your application.
See “Credit scores in employment, Believers and Nonbelievers.” Which side are you on?
See the previous email to the Federal Reserve.
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To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
From: creditscoring.com
Subject: Re: credit score, employers II
Cc: D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta
Date: 2/17/09
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Please reply.
At 12:34 PM 2/12/2009, creditscoring.com wrote:
You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”
See http://creditscoring.com/influence/government/employercreditscorebelievers.html .
Who is your source regarding credit score use by employers?
What is the name of an employer who uses credit scores?
The Federal Reserve Bank of Atlanta periodical publication “Partners in Community and Economic Development” (Vol. 18, No. 2, 2008) contains an article titled “New FICO Model Changes Approaches to Consumer Credit.”
Here is the initial email to the U.S. central bank:
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To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
From: creditscoring.com
Subject: credit score, employers
Date: 2/12/09
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You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”
See http://creditscoring.com/influence/government/employercreditscorebelievers.html .
Who is your source regarding credit score use by employers?
What is the name of an employer who uses credit scores?
See the next email to the Federal Reserve.
| Subject: Short Sale From: DM To: greg@creditscoring.com Date: 1/21/2009 |
I’m in the process of selling my home, and am likely going to sell it for less than I bought it for. Therefore, I will still owe the bank some money from my mortgage. They have offered to do a short sale of the home, in which they would absorb the difference. How will this affect my credit score?
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Subject: Re: Short Sale, Fair Isaac statement, lending guidelines, points lost
From: greg@creditscoring.com
To: DM
Date: 1/23/2009
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See the Fair Isaac Q&A with the question, “Are the alternatives to foreclosure any better as far as my FICO score is concerned?”
For borrowing money for a house in the future, however, lending guidelines trump the credit score. For instance, Fannie Mae’s rule is outlined in its June 28 announcement: “Due to the increased incidence of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.” Fannie Mae is conducting pilot programs to test a potential new policy that quickens the preforeclosure sale (“short sale“) process.
Regarding the number of points lost, as with foreclosure (or any action), it depends on other factors. One columnist writes, “FICO spokesman Craig Watts said that the impact of a foreclosure on an individual’s score depends heavily on the payment history, length and number of credit trade lines in a consumer’s file, but ‘it is always significant.'” A big reason that there is little official information (although there are many opinions) on the true effect of a short sale is an old conundrum of credit scoring: The observer’s paradox. The consumer’s mere knowledge that he is scored changes his behavior.